Tuesday, May 9, 2017

Department of Finance launched new Tax Calculator for the proposed Tax Reform!

President Rodrigo Duterte during campaigned period vowed that he will lower the tax income rates shouldered by working filipinos.

Picture below is the current tax scheme.

Department of Finance submitted a proposal to the house of representatives in September. According to congressional rules, tax measures are mandated to originate from, and be passed in, the House of Representatives before it goes through Senate scrutiny.

The new proposal now seeks to exempt employees who earn P250,000 or below annually from income taxes. On top of this, the mandated 13th month pay of up to P82,000 and other bonuses will still be tax-free.